Answer:
Explanation:
The closing entries for the following accounts are shown below:
1. Service Revenue A/c Dr $550,000
To Income Summary $550,000
(Being revenue account closed)
2. Income summary A/c Dr $314,200
To Depreciation Expense $39,000
To Salaries expense $125,000
To Utilities Expense $10,000
To Rent Expense $100,000
To Advertising expense $40,200
(Being expenses accounts are closed)
3. Income summary A/c Dr $235,800 ($550,000 - $314,200)
To Retained earning $235,800
(Being the difference is credited to retained earning)
4. Retained earnings A/c Dr $183,000
To Dividend A/c $183,000
(Being dividend account is closed)
